The Jay Sidhu-led Customers Bancorp confirmed reports from the Indian business press that it has formed a business collaboration with and will invest $51 million in Religare Enterprises Ltd., which it described as a diversified financial services company. Customers said it is also applying for a banking license in India.

"We agreed to invest after doing research on investment opportunities in the financial services industry in India with the help of Dinodia Capital Advisors, and have negotiated what we believe are very attractive terms and covenants in connection with this investment,” Sidhu said in a statement. “We feel comfortable with the growth prospects of Religare and its subsidiaries and affiliates, and look forward to a long-term relationship with them.”

Customers said it has agreed to invest $51 million, spread amongst the purchase of shares, both directly from Religare and separately from a promoter of the company, and the purchase of warrants.

Customers Chief Financial Officer James D. Hogan said he expects the collaboration and investment to provide well in excess of the bank's current return on equity on the capital being deployed and to enhance the bank’s long-term earnings.

“Religare plans to be an important player in India, the third largest economy in the world and one of the least exploited banking markets in the world,” Hogan said. “Working with Religare, we also plan to set up a small group at Customers Bank catering to professionals from South East Asia and businesses who want to take advantage of opportunities in Southeast Asia. This is a rapidly growing niche in our markets from Boston to Washington.”

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